Foreign Investment

Foreign Investment
Althea Brown
Introduction to International Business
Unit 4 Individual Project
July 3, 2011

In this paper I will attempt to show the purpose for foreign investment regulations as well as list and explain the foreign investment regulations. I will also attempt to show tow issues that concern management when screening potential markets and sites. Last I will go over the steps in the screening process.

Foreign investment is a necessary factor for counties the entire world to maintain economic growth. Therefore there have to be regulations put into place to safeguard investors as well as the countries that they are investing in.
There are many factors that foreign investors should consider such as exchange rates and how they are determined, what type of strategy to use in other to obtain the goals and outcome that they desire. They also need to do research in whatever international business venture or market that they are interested in. Research must be made in what location to set up in, the business environment. (Unit 4 Multimedia Course Material)

The purpose for foreign investment regulation is to control the flow of foreign investments in certain sectors. The aim of the regulations is to maintain a balance between domestic and foreign investments. These regulations also are put into place to address concerns for national security. (India Business Directory, 1999-2010)

Foreign investments are put into place to put foreign capital to work. These regulations include the promotion of local productivity; and technological development, the encouragement of local participation and the minimization of foreign competition in areas that are economically served by the local businesses. (Unit 4 Multimedia Course Material)
These regulations are implemented by requiring the foreign investors to register with the government and to also receive approval form that government for their particular market proposals....